policy automation net benefits of business rules automation
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Net Benefits of Business Rules Automation Tamas Kramer Applications Sales Executive, Policy Automation, Central & Eastern Europe April, 2011
POLICY AUTOMATION
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The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.
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Why Policy Automation?
Robert Tartaglia, global COO of Allianz Global Corporate and Specialty based out of London, part of the German Allianz insurance group, explains that if an organization is not doing well in this area, “you are at best inefficient, you are likely ineffective, and you don’t know if the policy has brought value.” … “One of the biggest challenges is how to balance running the business with changing the business. Typically, companies don’t say ‘you must change policy but can make less money while doing so’.”
Robert Tartaglia Chief Operating Officer
Allianz Global Corporate & Specialty
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What is policy?
Policy can be interpreted as: • A company/public body’s interpretation of their legislative obligations • Rules created by the company/public body which are allowed under legislation and drive how the company/public body function
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What does Oracle Policy Automation do?
• An engine for making complex decisions and calculations based on a set of rules
• Users create their rules in their natural language using
� Microsoft Word � Microsoft Excel � Microsoft Visio
• The rules are kept separate from any application code - Easier to test and maintain - The rules look like the source documents
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Policy Automation: Mission & History
20 years as a proven EPA leader
Mission is to “Optimize Enterprise Policy Automation” (EPA)
� Customers include the world’s largest government agencies and global 1,000 financial services, insurance and commercial customers
� Consistently recognized as a leader by industry analysts
� Customers and revenue from across North America, EMEA, Asia-Pacific, and Australia
� Patented technology automates legislation and policy using natural language rather than programming language, with multiple languages already supported
� Designed for rapid creation of industry content that can be easily configured for an organization's unique requirements
� Standard, pre-built integrations with leading enterprise application vendors
� Government agencies use Haley to serve tens of millions of citizens
� Tier 1 commercial banks use Haley to serve millions of customers
� Global insurers use Haley to automate tens of thousands of daily claims transactions
� Dynamic self-service applications and high-volume enterprise automation based on complex policy and legislation
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Policy Automation Customers
Financial Services and Insurance
Government Other
• American Fidelity (US) • Countrywide (US) • Credit Suisse (Switzerland) • UBS (Switzerland) • BUPA (UK, Ireland) • NASD (US) • United Healthcare (US)
• HealthMarkets (US) • American International Assurance
(US)
• Farm Bureau Financial Services (US)
• British American Tobacco (UK) • Motosport (US) • Cisco (US) • Intel (US) • AT&T (US) • Toyota Motor Corp (US)
• Internal Revenue Service (US) • Govt of British Columbia
(Canada) • Montana DMV (US) • HM Revenue & Customs (UK) • Home Office (UK) • Ministry of Defence (UK) • Dept Trade and Industry (UK) • Dept of Social Security (Sweden) • Westchester County (US)
• ICF Road Home (US) • 50+ Local Councils (UK) • Small Business Service (UK) • Dept of Statistics (Netherlands) • Dept of Defence (Australia) • Dept of Veterans’ Affairs
(Australia) • Dept of Immigration (Australia) • NSW Government (Australia)
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•Business users create the content
•Unique tools check rules &
show implications
•Quick, high performance deployment
• Business people write rules in Natural Language and therefore no cost or risk associated with translation by IT
• Manage rules with business tools like Microsoft Word, Excel, Visio reduces training requirement and allows for agility with updates
• Policy Isomorphism providing confidence in and visibility of rules
• In-built simulation and scenario modelling gives capacity to analyse and test policy and rule outcomes
• Detailed determination reporting documents how conclusions were reached for audit purposes
• Automated and interactive rule testing to ensure that deployments give correct results
• Fully SOA-enabled out-of-the-box providing low cost flexibility
• Integrated with Siebel
• High performance inference engine with Temporal Reasoning architecture
Policy Automation Value Proposition
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• Dramatically improves time-to-market for changes to policies and rules
• Simplifies development and maintenance
• Ensures accuracy and consistency in complex decisions and determinations
• Reduces the burden on IT resources • Assesses the impact of changes in
policy on customers and citizens through “what if” scenarios
• Provides full audit-trail capability
The Resulting Key Benefits
Policy
Documents
Modelling
Enforcement
Deploym
ent Assessment
Opt
imiz
atio
n
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7 Unique Product Differentiators
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Key Enabler: Policy Isomorphism (Patented)
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The Source
Legislation or
Policy
Executable Document in Natural
Language that Business users can
understand and modify Copy, Paste, Markup
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Key Enabler: Dynamic interactive interviews
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Asks least number
of questions in
most logical order
to finalize a
determination
Questions
automatically
created from
source document
without need
for any
programming
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Key Enabler: Determination Reporting
•13
Positive and
Negative
statements
automatically
created to explain
determination
Can be used to
build the content
for a letter of
advice or audit
Natural language
engine provides
personalization
and pronoun
substitution
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Key enabler: Temporal Reasoning (Patent Pending)
• Efficiently handle changes in: • Eligibility, e.g. a change in minimum age, which takes affect on a certain date
• Rates, e.g. quarterly increase of a benefit rate • Customer circumstances, e.g. number of children, marital status
• Benefits of the Oracle Policy Modeling approach to temporal
reasoning: • Accurate calculation of payments even when notification is retrospective • Expressing time-based logic is simple and concise • Optimal performance, without forgoing transparency or decision audits
Annual rate
increase
Annual rate
increase
Annual rate
increase
Claimant is married
New child Pay rise New child
New eligibility
rules come into effect
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Key Enabler: Business User Regression Testing
Clearly define and communicate
expected behavior for complex
scenarios
Ensure that between policy
versions only expected
differences occur
Instantly run 100s or 1000s
of test cases, and drill into
report results
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Key Enabler: Policy Visualization
Quickly find
dependencies
across sections,
and claimant data
Clearly identify
base data needed
for decision making
purposes
Find orphaned
sections of
legislation, and
identify unused
data items
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Key Enabler: Outstanding Performance
• Patented high-speed Linear Inferencing algorithm • Faster than Rete which is widely used within BRE industry • Better exploits modern CPU architectures • More space efficient (stateless) • Well suited to batch/transactional processing scenarios
• Results of benchmarking: • Over 1 million premise evaluations/sec • Using dual CPU Sun Fire 280R
0
0.5
1
1.5
2
2.5
3
0 2000 4000 6000 8000 10000 12000
# concurrent users
Ave
rage
resp
onse
tim
e (s
ecs)
•Oracle Web Determinations on 8 CPU Sun server
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Key Enabler: Multi Lingual capability
Model rules in your native language in Word or Excel Model rules in your native language in Word or Excel
•Easily add new verbs as needed •Easily add new verbs as needed
Integrate natural language questions into any application Integrate natural language questions into any application
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Automatic Language Parsing
Available for English, French, German, Spanish, Dutch, Swedish, Danish, Italian, Turkish*
* Italian beta version
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Insurance-specific Business Rules
With Oracle Policy Automation and Modeling for Insurance, insurers can manage business rules for the following industry-specific processes:
• Eligibility determination • Rating and underwriting and enrolments • Product configuration • Automatic claim adjudication • Complex benefit calculations • Medical bill review • Fraud detection • Subrogation detection • Benefits explanation • Business process management • Regulatory compliance • Pre-authorization
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Why OPA for Finance? • Improves/Automates Credit check
• Accelerates product development • Support of sales/consultancy, precise and
coherent pre-calculation schemes
• Focus on the front-office
• Manage risk: fraud, subrogation detection
• Accelerates business processes • Regulatory compliance
• Automated deployment of multiple sales/customer care channels
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Example Outcomes with Oracle Policy Automation Improved Agility and Customer Service with Reduced IT Project Costs
Area Without OPA
With OPA
Net Benefit
% Benefit
Business Rule Capture 200 days 20 days 180 days 90%
Logic Updates 90 days 3 days 87 days 97%
Call Center Training 60 days 5 days 55 days 95%
Business Logic Implem. $1M* $200K* 800K* 80%
Processing days / case 30 3 27 95%
Call Center calls / case 4 1 3 75%
Error Rate / 1000 cases 50 24 26 52%
Appeal Rate / 100 cases 5 3 2 45%
Source: OPA customer interviews. 2000-2009. *Relative expenditure figures based on customer side-by-side study vs. other implementation techniques
Improved
Agility
Improved
Custom
er Service
Low
er IT
P
roje
ct C
osts
H
ighe
r Q
ualit
y
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Summary: The Policy Automation Difference
• Handling business logic that requires: • Modelling complex legislation, policy, regulation in a portable
Microsoft Office Document • Temporal logic or data changes • Frequent rule changes or updates • Business rules managed in English or other languages
• While delivering: • Explanations for how decisions were reached • Interactive decision guidance • Compatibility, integration and high performance • Incomparable rule authoring lifecycle productivity • Strong testing and maintainability
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Backups
POLICY AUTOMATION
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Oracle Policy Automation
DEMONSTRATION: Oracle Policy Modeling and Automatio n Previously branded as Haley Office Rules
Oracle Policy Modeling
Oracle Web Determinations
Oracle Determinations Engine
Oracle Determinations Server (SOA)
CRM, Portal
HR, ERP
Middleware / Native Web Services / Java / .NET
Other Database
Oracle Policy Automation Connector for Siebel
Oracle Policy Automation Connector for SAP JCo
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One of 5 leaders in Business Rules
Haley has leading solutions for business analysts across all verticals
• Source: Forrester, “The Forrester Wave™: Business Rules Platforms, Q2 2008,” April 8, 2008.
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But unique in Determinations
Haley’s eligibility determinations technology is recognized as unique as well as being a leader
• Source: Forrester, “The Forrester Wave™: Business Rules Platforms, Q2 2008,” April 8, 2008.
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Questions
Tamas Kramer | applications sales executive | email: tamas.kramer@oracle.com
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